On July 28, HSBC and CECEP released the 2025 Q2 update of the HSBC Greater Bay Area ESG Index.

The report shows that the efficient application of technological innovation is driving accelerated industrial upgrading and transformation within the region. The Guangdong-Hong Kong-Macao Greater Bay Area is becoming a model for balanced development, balancing economic growth with ESG goals, and economic vitality with social inclusion.

The ESG performance of major industries in the region continues to improve. The Greater Bay Area ESG Industry Sub-Index reached a new high of 237.52 in the second quarter, a 4% increase from the previous quarter. The regional index also improved from the previous quarter, reaching 128.29.

Green investment and financing in the Greater Bay Area remained active in the second quarter, with GSSS (Green, Social, Sustainability, and Sustainability Performance-Linked) bond issuance increasing by 11% year-on-year, with over 90% of these bonds being green bonds. Green and sustainable investment also continued its upward trend, with the number of newly issued ESG public funds surpassing the previous quarter to reach 29 (26 new ESG public funds were issued in the Greater Bay Area in the first quarter of 2025).

The report also focuses on how the healthcare industry can leverage artificial intelligence and communications technologies to build a smart healthcare system, transcending geographical limitations, enabling resource sharing and reducing costs. This will make healthcare more accessible, efficient, and affordable, while also improving the industry's overall ESG performance.

The report notes that governments and businesses across the Greater Bay Area have continuously increased their R&D investment in recent years. Between 2019 and 2024, Guangdong Province's R&D spending grew by an average of approximately 10% annually, leading the nation for eight consecutive years. Hong Kong has also been proactive in supporting innovation, with R&D investment increasing by approximately 8% annually, further enhancing the Greater Bay Area's overall innovation capabilities. More notably, businesses have become the leading force driving technological innovation, contributing over 80% of Guangdong's R&D investment in the past few years.

HSBC China Vice President and Greater Bay Area Head, Chen Qingyao, said, "Against the backdrop of global industrial chain restructuring, the Greater Bay Area continues to expand its innovation ecosystem, actively improving the efficiency and effectiveness of scientific and technological achievements in application, and striving to become an international hub for innovation-driven development. While increasing investment in basic research and breaking through technological bottlenecks, the Greater Bay Area is also actively building a more inclusive and sustainable environment, using science and technology and finance to promote the development of the silver economy and address the challenges of an aging population. This will further solidify the foundation in the final year of the 14th Five-Year Plan and prepare for the next phase of high-quality development."

Liao Yuan, Executive Director and General Manager of China Energy Conservation and Environmental Protection (Hong Kong) Investment Co., Ltd., said, "Among the key industries we focus on, ESG performance generally improved in the second quarter. The industrial sector saw the most significant improvement, driven by its active response to climate change and increased ESG information disclosure. This demonstrates that the Greater Bay Area's industrial upgrading and transformation are actively promoting sustainable development within the region. Even more encouraging is the continuous breakthroughs in green and low-carbon technologies, such as hydrogen fuel, which have begun to be put into practical use. We believe this will bring new green momentum to the Greater Bay Area's development."

Author：Qinger